Banque Bemo L : Daily Markets Brief

Daily Market Brief

January 17th 2023

FOREIGN EXCHANGE MARKETS

(Sources: Bloomberg / Forexlive)

EURUSD

The EUR/USD pair has continued to trade rangebound near 1.0830 in the Asian session. The major currency pair is displaying a lackluster performance amid ambiguity in the risk profile as the United States markets will open on Tuesday after a stretched weekend. A volatility contraction in the asset is likely to get exploded ahead.

GBPUSD

GBP/USD stays defensive around 1.2210, despite the downbeat week-start, as Cable traders await the key UK jobs report, up for publishing on early Tuesday. It's worth noting that the multiple negatives surrounding the UK's employment updates join the British political pessimism to probe the pair buyers even as the US Dollar Index (DXY) weakness underpins the recovery moves.

USDJPY

The USD/JPY pair has faced resistance while attempting to recapture the crucial resistance of 129.00 in the early Asian session. The asset has dropped below

128.50 and is likely to remain on the tenterhooks as investors are awaiting the announcement of the Bank of Japan (BoJ)'s first monetary policy of CY2023.

INTERNATIONAL EQUITY MARKETS

(Sources: Bloomberg / Reuters)

UNITED STATES OF AMERICA

U.S. stock futures were trading lower during Monday's evening deals, after major benchmark indices remained closed for the public holiday, with traders looking ahead to a busy week of economic data and corporate earnings results.

EUROPE

European shares hit a near nine-month high on Monday, albeit in light trading due to a U.S. holiday, with real estate and retail stocks helping offset losses in commodity-linked secors. Temenos shares up after CEO quits.

ASIA

China and Hong Kong shares dropped Tuesday as Beijing released lower GDP growth and economic activity data for the fourth quarter, and investors sold on gains ahead of the Lunar New Year holiday.

MUST READ(Source: Bloomberg/ Forexlive)

Short sellers made $300 billion in 2022's market wipeout

A terrible year for most investors in the stock market was one to celebrate for traders who bet successfully on its decline. U.S. short sellers were up 31% in 2022, sitting on $300 billion in mark- to market profits on an average short interest of $973 billion, research from data analytics firm S3 Partners showed. These winnings came as equity markets closed out their worst run since the Global Financial Crisis more than a decade ago. The S&P 500 tumbled 19.4% in 2022, the Dow fell 9%, and the Nasdaq Composite dropped 33%. For the first time since 2000, the Nasdaq fell during each quarter of the year. The major indexes also snapped a three-year winning streak in 2022, battered by aggressive monetary tightening by the Federal Reserve to tame stubborn inflation and Russia's war in Ukraine. Short-side returns outperformed the long returns of the S&P 500 and broader Russell 3000, according to S3. But shorts slightly underperformed the technology. heavy Nasdaq Composite as it weathered the brunt of last year's selling pressures, meaning market gains realized by investors betting against the Nasdaq would've been more than wiped out by the index's decline. "Short sellers still needed to be good stock pickers in order to maximize their returns" " S3's Ihor Dusaniwsky said in a note. "Even on a more macro level, picking which sectors to short produced wildly divergent returns." Communications Services and Consumer Discretionary were the most profitable sectors for short-sellers, earning traders an average return of 50%. The two components of the S&P 500 led declines among the other nine sectors,

logging

losses

of

37.7%

and

36.2%,

respectively,

in

2022.

Fx rates	Last	High	Low	% Daily	% Weekly	% YTD
EUR-USD	1.0829	1.0836	1.0807	0.06	0.89	1.16
GBP-USD	1.2201	1.2213	1.2173	0.06	0.39	0.98
USD-JPY	128.76	129.15	128.22	0.14	2.72	1.83
USD-CHF	0.9246	0.9276	0.9241	-0.21	-0.21	-0.01
Commodities	Last	High	Low	% Daily	% Weekly	% YTD
Silver	24.14	24.37	24.09	-0.46	2.28	0.78
Crude Oil	79.45	80.22	78.53	-0.51	6.46	-1.01
Bitcoin	21132.18	21295.85	20860.61	0.00	12.22	27.77
Etherium	1564.92	1585.86	1542.36	-0.94	9.70	30.48
Period		1 M	3 M			12 M
EURIBOR		1.91	2.33			3.32
* USD LIBOR rates will be discontinued after June 30, 2023 and will be replaced by SOFR
Notes/Bonds		2 Y	10 Y			30 Y
US		4.24	3.54			3.66
BTP - BUND		0.36	1.84			2.09
GILTS		3.52	3.38			3.73
Index	Close	% Daily	% M	YTD	Futures	% Change
S&P	3999.09	0.40	3.81	4.16	4005.50	-0.32
Nasdaq	11079.16	0.71	3.49	5.85	11549.00	-0.51
DJ EuroStoxx50	4157.00	0.15	9.28	9.58	4157.00	-0.22
FTSE 100	7860.07	0.20	7.20	5.48	7850.00	0.03
CAC 40	7043.31	0.28	9.15	8.80	7045.50	N/A
DAX	15134.04	0.31	8.93	8.69	15173.00	-0.20
IBEX 35	8871.10	-0.12	9.35	7.80	8880.80	N/A
FTSE MIB	25901.33	0.46	9.34	9.26	25895.00	N/A
Nikkei	25822.32	1.23	-5.04	0.17	26110.00	1.36
Hang Seng	21746.72	-1.16	10.51	8.66	21536.00	-0.86
DFM General	3333.94	-0.09	0.06	-0.15	N/A	N/A
MSCI Tadawoul	10728.45	0.01	4.26	2.39	N/A	N/A
	PRIOR_CLOSE_MID		CHG_PC CHG_PC CHG_PCT_
Leb. Mrkts	Closing Px	High	Low	% Daily	% Weekly	YTD
Solidere B	61.75	61.90	60.80	2.07	4.22	2.32
		MAIN WEEKLY EARNINGS	(Source: Nasdaq)
Company	Ticker	Market Cap	Date	Time	Estimate	Year Ago
Morgan Stanely	MS US	$151.1 B	17-Jan-23	Pre-mkt	1.25	2.08
Goldman Sachs	GS US	$123.4 B	17-Jan-23	Pre-mkt	5.25	10.81
Citizens Financial	CFG US	$20.4 B	17-Jan-23	Pre-mkt	1.30	1.26
United Airlines	UAL US	$15.5 B	17-Jan-23	After-mkt	2.08	-1.60
Interactve Brokers	IBKR US	$7.6 B	17-Jan-23	After-mkt	1.16	0.83
		ECONOMIC CALENDER	(Source: Forexlive)

(17-01-23) CH- World Economic Forum - Davos

(17-01-23) DE- Harmonized Index of Consumer Prices YoY DEC

(17-01-23) GB- Average Including/Excluding Bonus (3Mo/Yr) NOV

(17-01-23) GB- ILO Unemployment Rate (3M) NOV; Claimant Count Change DEC

(17-01-23) EA- Eurogroup Meeting; ZEW Survey - Economic Sentiment JAN

(17-01-23) DE- ZEW Survey - Economic Sentiment, Current Situation JAN

(17-01-23) CA- BoC Consumer Price Index Core YoY DEC; Consumer Price Index DEC

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